Prime Minister Narendra Modi has urged citizens to adopt austerity measures such as working from home (WFH) and conserving fuel. This appeal comes in response to an energy supply crunch exacerbated by the ongoing conflict in West Asia, which has led to a blockade of the Strait of Hormuz.
Revisiting Pandemic-Era Habits
Modi highlighted that during the COVID-19 pandemic, the nation smoothly adapted to new methods like WFH, virtual meetings, and video conferencing. He emphasized that resuming these practices is now the “need of the hour.”
"We got into work-from-home, virtual meetings, video conferencing, and many other methods during Covid-19. We got habituated to them. The need of the hour is to resume those methods,” Prime Minister Modi stated.
Beyond WFH, the Prime Minister advocated for increased use of metro services and public transport over private vehicles wherever feasible. He also promoted the adoption of electric vehicles (EVs) as a means to reduce India's reliance on imported fuel.
Economic Impact of Global Tensions
The call for austerity measures is directly linked to the economic fallout from the West Asia conflict. The blockade of the Strait of Hormuz has put significant pressure on global supply chains and energy prices.
State oil companies in India are reportedly incurring substantial losses, estimated between ₹700-1,000 crore per day, totaling around ₹30,000 crore monthly. These companies are absorbing the financial hit, as the government has maintained stable petrol, diesel, and LPG prices despite surging global energy costs.
In contrast, several other countries, including Japan and the UK, have increased petrol and diesel prices by up to 30 percent since the conflict began on February 28. Daily under-recoveries for Indian oil companies were estimated at approximately ₹18 per litre on petrol and ₹25 per litre on diesel during April.
Modi stressed that during a global crisis, it is essential for the country to prioritize national interests and collectively take resolutions to mitigate economic challenges.